Possible investigation into Trudeau, WE Charity multi-million dollar contract

The concern over the Trudeau government’s awarding of sole-sourced contract to the WE organisation is growing as the opposition Conservative Party is now seeking advice to launch a criminal investigation.

The concern is over Trudeau’s personal and family connections with the WE Charity and the awarding of a multi-million dollar contract to administer the Canada Student Service Grant, a $912 million programme.

The grant money, up to $5,000 would be paid to young people who volunteer on COVID-19 related efforts over the summer, at a rate of $1,000 for every 100 hours of volunteer work. That had been initially raised questions as to whether it was appropriate to pay students less than minimum wage laws.

The WE group was to be paid $19.5 million to administer the programme for the federal government.

The contract was announced on June 25, but there was a backlash given the long personal association the Trudeau and his wife have with the WE group.

The deal was called on on July 3, the same day the ,Federal Conflict of Interest and Ethics Commissioner Mario Dion announced that his office was investigating a potential conflict of interest violation over the choice of awarding of the contract to the WE organisation.

As questions arose about the relationship, WE withdrew from the contract last week. Trudeau had defended the sole-source award claiming that WE was the only group with a national network able to handle the programme, a claim which  other charitable groups have questioned that.

In an email to CBC, Anne Rosenfield ditor of the Hilborn Charity eNews, which covers fundraising and non-profit management, suggested that the United Way, Volunteer Canada, and Community Foundations of Canada all have experience and connections suitable for the task.

Gail Picco, editor-in-chief of The Charity Report, quoted in CBC also said although WE is extensively involved with young people across Canada, such a grant programme would need connections with a wide variety of other non-profit organisations, adding, “They’re not talking to other charities or not-for-profits. They don’t work in coalition with other organizations, They are really, really quite externalized in their focus.“

CTV the reported that last Thursday the WE Charity revealed that Prime Minister Trudeau’s mother, Margaret, and brother, Alexandre, had been paid some $350,000 for several speaking engagements ($312,000 and $40,000 respectively) over the past four years and which iPolitics reports, contradicted the charity’s initial claims. This has led to further concerns about potential conflict of interest.

CTV also reports Trudeau’s wife had received $1,400 for participating in a WE event in 2012 while Trudeau was a member of Parliament, but not leader of the Liberal Party. His wife also currently hosts a podcast for the charity but the WE Charity says she isn’t paid for doing so.

Conservative opposition finance critic Pierre Polievre and ethics critic Michael Barrett  said the recent revelations about payments to Trudeau family members raises the concern beyond a mere potential ethics violation, and are seeking a police investigation. They indicated they will seek advice from the national police force, the Royal Canadian Mounted Police, as to whether the Criminal Code section on government fraud would apply in this case. Section 121 of the Criminal Code states  it’s an offence to give or offer to an official or any family member  “a loan, reward, advantage or benefit of any kind as consideration for co-operation, assistance, exercise of influence or an act or omission in connection with the transaction of business with or any matter of business relating to the government.”

The leader of the opposition Bloc Quebecois, Yves-Francois Blanchet, said the size of the contract and  the “gross appearance of conflict of interest” means Trudeau should step aside until the ethics commissioner completes his investigation.

Also recently revealed is that Liberal Finance Minister, Bill Morneau was also in on the cabinet discussions about the WE contract although his two daughters have connections to the group. One of his daughters is a contract employee, the other has volunteered as a speaker at WE events and Morneau’s office told CBC she has never received money for doing so.

Morneau’s office told CBC that his other daughter’s contract position ends at the end of August, and that there is  “abolutely no link between her employment and any work that WE does with the government of Canada.”

Neither the Conservatives nor the Bloc say they want to bring down the government over the issue. Barret, quoted in the CBC today said, We’re looking to get the get the truth and get accountability for Canadians. That’s what they deserve from the opposition parties and that’s what they deserve from the official opposition,”

additional information-sources

• CBC: JP Tasker: Jul 10/20: Tories ask police to investigate Prime Minister over WE Charity deal
• i Politics: C Pinkerton: Jul9/20: Another House committee to investigate Trudeau government’s WE Charity deal
• CBC: J McGregor: Jul 10/20: Bill Morneau has family ties to WE Charity, did not steer clear of cabinet discussion of contract
• Global News: B Britneff: Jul 10/20: Criminal probe needed over WE contract. Trudeau family speaking fees: Tories
• CBC: J McGregor: Jul 6/20: WE Charity is out of grant program, but issues remain with paying student volunteers
• CBC: M Gollom: Jul 3/20: Doubt cast over Trudeau’s assertion that only WE Charity  can run $900M student grant program
• PostMedia: C Nardi: Jul 3/20: Federal ethics commissioner investigates Trudeau’s ties to WE Charity over $912M student volunteer grant